BigBloc Construction Limited Q4 FY24 Earnings Conference Call Summary
Financial Performance
• Q4 FY24 Results:
• Operating Revenues: Rs 68 crores (46% YoY increase)
• EBITDA: Rs 13 crores (19% growth)
• Profit After Tax: Rs 9 crores (54% growth)
• Full FY24 Results:
• Total Revenues: Rs 243 crores (22% increase)
• EBITDA: Rs 56 crores (12% growth)
• Profit After Tax: Rs 31 crores (2% growth)
Operational Highlights
• Capacity Utilization:
• Q4: Above 85%
• Full Year: Around 75%
• Expansion Plans:
• Capacity expansion at Vada plant
• Production commenced at joint venture plant in Gujarat
Future Outlook
• Revenue Growth Expectation: 20-25% for FY25
• Market Exploration: New markets in Southern and Northern India
Margin and Expense Discussion
• Impact on Margins:
• Increased expenses due to new market entry and marketing for new JV product (panels)
• Margin Expectations for FY25 and FY26:
• Target EBITDA Margin: 20% to 25%
• Initial margins for panels expected to be similar to existing products
Market Demand and Pricing
• Strong demand in the real estate sector despite labor issues
• Pricing realization differences: 3% to 5% in newer markets
Debt-to-Equity Ratio Concerns
• Increased from 0.5 to 1.3 due to CAPEX for Vada and JV projects
• Anticipated stabilization around 1:1 as revenue increases
Project Updates
• Vada expansion delays due to government approvals, expected completion by mid-2024
• Cost comparison: ALC panels vs. blocks, with panels offering time savings and better strength
Competitive Landscape
• Major competitors not currently expanding capacity
• Strong demand helping to maintain margins despite competitive pressures
Conclusion
• Capacity utilization target for FY25: 70%-75%
• Demand for ALC blocks and panels expected to increase, with potential market shifts from AAC blocks
• Closing Remarks:
• Participants invited to reach out through Investor Relations for further inquiries.

Earnings Performance
• Q3 FY24 Results:
• Operating revenues: INR 62 crores (24% YoY increase)
• EBITDA: INR 16 crores (22% growth)
• Profit after tax: INR 9 crores (12% growth)
• Nine-Month Performance:
• Revenues: INR 175 crores (14% increase)
• Profit after tax: INR 22 crores (11% decline)
Operational Highlights
• Capacity Expansion:
• Wada plant capacity to increase from 250,000 m³ to 500,000 m³.
• Joint venture with SCG Group for a new ALC panel plant in Ahmedabad.
• Dividend Announcement:
• Second interim dividend of 10%.
Market Insights
• AAC Block Market Potential:
• India has ~100 AAC block plants vs. 2,500-3,000 in China.
• Potential for conversion from red bricks to AAC blocks in India.
Future Projections
• Volume Estimates for FY'25:
• Current capacity: 825,000 m³/year, expected 80% utilization.
• Selling prices: AAC blocks at INR 4,000/m³; panels at INR 7,500-8,000/m³.
• Revenue Contribution:
• Panels projected to contribute 5-10% of total revenue in two years.
• Construction chemicals expected to contribute 10-15%.
Margin and Cost Management
• Margin Sustainability:
• Margins expected to remain between 20-25%.
• Competitive advantages from economies of scale and efficient logistics.
• Cost Comparison:
• AAC blocks are 10-15% cheaper than traditional bricks.
Expansion and Marketing Strategies
• Operational Reach:
• Plants can service markets up to 350 km; need for additional plants identified.
• Marketing Budget:
• Increased promotional expenses planned for new product launch.
Subsidies and Tax Rates
• State Subsidies:
• Best subsidies available in Maharashtra; exploring benefits in other regions.
• Effective Tax Rate:
• 10% for carbon credits; 15% for new plants.
Growth Expectations
• Revenue Growth Projections:
• Anticipated 25-30% increase next year due to improved capacity utilization.
• Volume Guidance:
• Expected 40-50% utilization across new facilities.
Challenges and Concerns
• Market Adoption:
• Slower adoption of AAC blocks despite lower costs compared to red bricks.
• Operational Challenges:
• Issues with raw material quality and rejection rates affecting new entrants.
Conclusion
• Outlook:
• Management remains optimistic about growth and expansion in the coming year.

BigBloc Construction Limited Earnings Conference Call Summary
Financial Performance
• Q2 Results:
• Operating revenues: Rs. 59 crores (21% YoY increase)
• EBITDA: Rs. 15 crores
• Profit after tax: Rs. 7.5 crores
• Half-Year Results:
• Total revenues: Rs. 114 crores (9.3% growth)
• Interim Dividend:
• Declared at 10%
• Promoters forgo dividend rights for growth support
Capacity Utilization and Production
• Wada Plant:
• Capacity utilization: 45% in Q2, expected to reach 80% soon
• Umargaon Unit:
• Autoclave replacements to enhance efficiency (cost: ₹4-5 crores)
• Future Capacity Expansion:
• Targeting over 2 million cubic meters in 2-3 years
Revenue and Market Projections
• FY24 Expectations:
• Revenue growth: 25%
• Volume growth: 20%-25%
• Long-term Revenue Target:
• Projected revenue of Rs. 400-500 crores by FY26
Market Dynamics and Challenges
• AAC Blocks Market:
• Significant growth opportunity (20% CAGR)
• Projected turnover of Rs. 500-600 crores in five years
• Raw Material Consumption:
• Breakdown: 60-65% fly ash, 20% cement, 12% lime, 3% additives
Industry Insights
• Cement Companies:
• Challenges in entering AAC market due to high costs
• Demand vs. Capacity:
• Demand outpacing capacity growth; older plants facing profitability issues
Operational Updates
• New Plant Timelines:
• Wada phase 2 and SIAM expected operational by FY25
• Funding for Expansion:
• Plans to raise funds through equity and debt
Regulatory and Market Trends
• BMC Pollution Control Guidelines:
• Minimal impact on sales anticipated
• Order Execution:
• Timeline: 12-15 hours; current order book: Rs. 7-8 crores
Sustainability Initiatives
• Carbon Credits:
• Generated revenue of Rs. 1.1 to 1.2 crores last quarter
• Projected annual generation of 200,000 carbon credit units
Conclusion
• Industry Shift:
• AAC blocks becoming cheaper than red bricks, increasing market acceptance
• Encouragement for Further Inquiries:
• Participants invited to reach out through Investor Relations team

Bigbloc Construction Limited Q1 FY24 Earnings Conference Call Summary
Financial Results
• Operating Revenues: INR 54.9 crores (1% decline YoY)
• EBITDA: INR 12.7 crores (4% increase, EBITDA margin of 23.13%)
• Profit After Tax (PAT): INR 6 crores (PAT margin of ~10.75%)
• Capacity Utilization: 65% (impacted by Wada plant)
Business Outlook
• Growth Target: Aiming to be the largest AAC manufacturer in India by FY24 end
• Long-term EBITDA Margin Target: 20-25%
• Focus on EBITDA: Management emphasizes EBITDA over net profit margins during CAPEX cycles
Capacity and Expansion
• Current Capacity Utilization: Existing plants at ~80%, Wada plant expected to reach 65-70% by Q3
• Future Capacity Plans: Expansion from 250,000 to 500,000 cubic meters at Wada plant, new greenfield facility by Q4 FY24
• CAPEX: Estimated at INR 18-20 crores for Wada plant, with a CAPEX subsidy structure providing INR 30 crores over ten years
Market Dynamics
• AAC Blocks Market Share: Currently 8-10% vs. red bricks at 85%+
• Pricing Dynamics: Red bricks more expensive due to regulations and transportation costs
• Demand Outlook: Stable demand in construction sector, potential slowdowns in AAC block market
Capital Expenditure and Debt Management
• Debt-to-Equity Ratio: Targeting between 1 and 1.5
• Funding for Expansion: Wada plant financed with INR 12-15 crores through debt; JV company requiring INR 65 crores (65% debt-funded)
• Projected Production Capacity: Expected to increase to 1,325,000 cubic meters post-expansion
Utilization and Sales Projections
• Utilization Expectations: 75-80% by year-end, projected sales volumes of 750,000 to 800,000 cubic meters next year
• Distribution Strategy: Mix of dealer sales and direct sales to corporates and builders
Additional Insights
• Carbon Credits: Aiming for 200,000 to 300,000 credits annually, with 45,000 to 50,000 expected soon
• Banking Relationship: Shifted from HDFC Bank to Axis Bank, withdrawing from CRISIL credit rating process
• Confidence in Growth: Management optimistic about achieving top-line growth and maintaining EBITDA margins despite seasonal impacts.

Bigbloc Construction Limited Q4 FY23 Earnings Call Summary
Earnings Overview
• Date of Call: May 25, 2023
• Revenue: Rs 46.5 crores (Q4 FY23)
• EBITDA: Rs 10.6 crores
• Net Profit: Rs 5.6 crores
• FY23 Total Revenue: Rs 200 crores (14.2% growth)
Future Outlook
• Expansion Plans: New projects including a solar power plant.
• Capacity Goals: Aiming to be the largest AAC manufacturer in India by FY24.
• Volume Growth: Targeting 600,000 to 650,000 cubic meters for the year.
Production and Capacity
• New Wada Plant: Increased total capacity to 825,000 cubic meters.
• Current Utilization: 20-25%, with expected growth of 10-15% monthly.
• Quarterly Revenue Growth: Anticipated at 20-25 crores.
Market Conditions
• Selling Prices: Stable between Rs 4,200 and Rs 4,300 per cubic meter.
• Geographic Expansion: Plans for new plants near Delhi and Bangalore.
Customer and Payment Dynamics
• Customer Base: Added large customers like Shapoorji Pallonji and Adani.
• Payment Issues: No significant problems; securing receivables through trade credit insurance.
Financial Projections
• Margins: Expected EBITDA and PAT margins around 15% for FY24.
• Joint Venture Plant: Production expected to start in Q4 FY24.
Industry Trends
• Real Estate Growth: Strong growth in Ahmedabad and Mumbai.
• Capacity Utilization: Wada facility expected to reach 75-80% utilization in five months.
• AAC Block Adoption: Currently 8-10% of building materials, with expected growth.
Competitive Landscape
• Pricing Concerns: Potential rise in red brick prices due to government support for green materials.
• Competition: Acknowledgment of increased competition but emphasis on competitive advantages.

Bigbloc Construction Limited Conference Call Summary (January 25, 2023)
Q3 and 9M FY23 Results
• Operating Revenues: ₹49.5 crores (2% increase QoQ, 6% decrease YoY)
• EBITDA: ₹13.3 crores (82% increase YoY, margin at 26.87%)
• PAT: ₹7 crores (83% increase YoY)
• Nine-Month Performance: Revenues up 25% to ₹154 crores, PAT up 186% to ₹25 crores
Operational Highlights
• Joint Venture: Partnership with Siam Cement for a new plant
• Expansion Projects: Ongoing efforts to significantly increase production capacity
• Storage Capacity: Expanded to 13.75 lakh cubic meters per annum
Market Dynamics
• Volume Decline: Year-on-year decline in Q3 volumes due to prolonged monsoon and increased travel during Diwali
• Capacity Utilization: Remains at 83%, with flat volume expectations for FY23
• Revenue Guidance: Targeting ₹225 crore, with ₹55-65 crore expected in Q4
Demand and Pricing
• Demand Trends: Strong demand for AAC blocks, but sales decline linked to external factors
• Pricing Stability: Margins maintained despite lower volumes, attributed to sustainable pricing
Expansion Plans
• New Facilities:
• Wada, Maharashtra: Commercial production starting February 2023 (500,000 cubic meters capacity)
• Kapadvanj, Gujarat: Production of AAC blocks and panels
• Joint Venture: Pursuing collaboration with a Singapore-based firm for AAC panels
Market Position
• Market Share: 4-6% in Western India, competing with larger players
• Brick Pricing: Slight decrease to ₹8-9 per brick, with expectations of stabilization
Future Outlook
• Geographic Expansion: Plans to enter new regions in North and South India
• Cost Dynamics: Rising costs of red bricks vs. affordability of AAC blocks
• Thailand Joint Venture: Land acquisition complete, construction expected to begin soon
Conclusion
• Management expressed confidence in achieving FY23 targets and maintaining margins, encouraging further inquiries from participants.